New Income Tax Slab 2025: Finance Minister Nirmala Sitharaman on Thursday introduced the new Income Tax Bill, 2025 amid uproar in the Lok Sabha. Along with this, he requested the Lok Sabha Speaker to send the bill to the Select Committee of the House.
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New Income Tax Slab 2025
Now the question is how will the taxpayers benefit from the new Income Tax Bill and will there be changes in the tax slabs after its implementation? Let us know the answers to all such questions.
New Income Tax Slab 2025: What is Speciality of New Bill?
This new bill is an exercise to make the direct tax law easier to understand and not impose any new tax burden. It will not contain provisions and explanations or difficult sentences. The new bill will make direct tax laws easier to read, remove ambiguities and reduce litigation.
The new Act will be free of all amendments and sections which are no longer relevant. Also, its language will be such that people will be able to understand it without the help of tax experts.Will there be changes in tex slab also ?There will be no changes in the tax slabs with the introduction of the new income tax bill.
The old tax regime or new tax structure will also remain the same as before. The new tax structure will be the default. Its slabs will be the same as proposed by Finance Minister Nirmala Sitharaman in Budget 2025.At the same time, the old tax structure has also been retained. If you want to adopt the old tax structure, they have to select it.
New Income Tax Slab 2025: What have Been the Changes?
In the new income tax bill, the limit of 44AD for businesses has been increased from Rs 2 crore to Rs 3 crore, while for professionals it has been increased from Rs 50 lakh to Rs 75 lakh. The tax audit filing date has been extended from September 30 to October 31. There was speculation that the scope of tax audit would be expanded to include CS and CMA also. But section 515 (3)(b) mentions that accountant means chartered accountant.
This has Brought Relief to the CA Community.
- The concepts of previous year (the year for which income tax is calculated) and assessment year (the year in which tax is calculated) have been abolished. This is now known as the tax year. This will improve tax terminology among common people.
- Long Term Capital Gain (LTCG) and Short Term Capital Gain (STCG) will remain the same as introduced last year. Apart from this, digital transactions are being encouraged with audit relief up to Rs 10 crore turnover.
- This bill will affect non-resident Indians (NRIs). Especially on those who earn Rs 15 lakh or more in India while not paying tax anywhere else. Such persons will be classified as “residents” for tax purposes Due to which they will have to pay tax on their income earned in India. The move is aimed at closing tax loopholes and preventing misuse of NRI status to avoid tax.
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